The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-21
The Water Works Bill.

hllPTnDO0, Lu6 famous WAIbT WOlk3
bill was read as follows.
The Water works Bill.
An act to amend an act entitled "a
"bill to establish Taxing Districts in
"this State, and to provide the means
"of local government for the same"
being Chapter II, OF the acts of 1879,
and to enlarge the powers Of said
Taxing Districts so as to authorize and
enable them 10 Guild works, lay pipes,
conductors, etc, in order to supply
the District aud its inhabitants with
water.
Section l. Be IL enacted By the Gen
erdl Assembly of The State Of Tennessee,
That Taxing Districts organized under
the act aforesaid be and they are hers-
by authorized to construct, own, main
tain and operate system of water
works for the purpose aud sufficient 10
supply the District and its inhabi.
tants with bountiiul supply of the
hest aud most wholesome water praC-
tiC1ble ia the Judgment Of the begis
lative Council of said District, with
power TO enlarge and extend the same
from time to time, as tae necessities
of said District or lis inhabitants may
require.
Sec. .. BE Il further enacted, That
in order to raise the means necessary
TO construct such water works, said
Taxiug Districts are authorized snd
empowered to issue coupon bonds to
the amount of not moro than 81, 500,-
coo, bearing interest at the rate OF not
more than 6 per cent. per annum,
payable semi annually, and maturing
not less than len nor more than forty
years after the date thereof, the form
OF which bond shall be substantially
as follows, viz:
State OF Tennessee,
Taxing District of - County.
No. -. Water Bond, $1,000.
The Taxing District OF - County,
a municipal corporation organic d and
existing under the laws OF the S,sts Of
Tennessee. acknowledges itself indebt.
ed to - or bearers, in the sum OF
one thousand dollars, which sum il
promises, rs hereinafter stated, to pay
to bearer - years after the date
hereof, at -, together with interest
at the rate OF per cent. per annum
payable semi-aunually, at the place
Aforesaid, on presentation and sur
render OF the interest coupons hereto
attached.
This bond is one Of the series mum
bered from one to - consecutively
each for the sum OF $1,000, anC
amounting in the sggreSae TO the sun
OF B, iesued under and subject II
the provisions OF an act of the Legis
lature of the State OF Tennessee, Chap
ter - OF the acts OF 1887. Payment o
the principal and interest hereof Is Sc
cured by a trust deed on the water
works, including land, buildings
pumping machinery, conduits, mains
reservoirs, stand pipes, water towers
filterers, pipes, ETC., built and laid o.
to be built and laid under the pIovis
ions OF said act, on the net revenue t.
be derived from said water works, anC
on the franchise to maintain and op
crate the same in the event of fore
closure sale under said trust deed.
In respect OF said principal sum o.
$1,000, this bond does not create o
carry any general liability of or againe
said Taxing District, but said Taxin,
District, in addition to the security al
forded by said trust dead, is liable gen
orally for the payment of eaid semi
annual interest coupons.
Sec. 3. BE ii further enacted That IL
order to secure the payment OF sale
bonds, said District may execute 1
trust deed on the entire system O
water works, land, buildings, pump
ing machinery, mains, conduits, re
servoirs, stand pipes, water towers
tiIterers, pipes, tic, and the iranchis,
to operate and maintain the same by
the purchasers, in the event OF fore
closure sale under such trust deed
Said trust deed TO embrace the entire
system of works gs aforesaid, the sys
TEN and all parts thereof and add
tions thereto to be treated as a unit
and TO fall under said trust deed
whe ther constructed or not at the date
OF its execution, and to embrace alst
all net revenue to be derived from
supplying the water to consumers
And in consideration OF the water h
be supplied by said works for public
use aud service, said Taxing Dlstric
shall contr butte such proportion Of
the gross income to be derived from
said works as the Legislative Council
may deem equitable and just, tn,
amount thereof to be fixed annually
by said Council.
Sec. 4. BE Il further enacted, That il
respect of the principal thereof thu
bonds to be issued as aforesaid shal
not create or carry any general liabil
ity against said District, but the holder
OF said ponds shall, in respect of sale
principal sum, look solely to said
water works system, and the net reve
nues therefrom, for the payment there
OF. No tax shall ever be levied for thu
payment Of the principal OF sale
bonds, nor shall any property OF the
District other than said water work
system be subjected to the paymen
OF said principal sum.
Sec. 5. Be il further enacted, Tha
said bonds shall not be negotiated a
less than par, and any official of tn,
District violating this provision shall
W kuiitJ VI - AoIOhJt anu upoh OOu
viction thereof shall be imprisoned
for not more than two years. Bu
said District may allow a brokerage
commission for placing or negotiating
said bonds OF not more than one-hal
Of one per cent.
Sec. 6. BE ii further enacted, That il
order to pay the interest on said bond
during the period Of the construc ioI
OF said works said Taxing Dstrit
may issue and sell not more thai
100000 Of six per cent. coupon bonds
to fall d1e - years after the dat
thereof, and the interest on whicl
shall be payable stmi-annually, oil
presentation and surrender Of the in
terest coupons. Said bonds shall NO
be sold at less than par. The Pre-
ceeds thereof shall be paid into tn
bank depository provided for in sec
ton 8 Of this act, and shall be USE
exclusively to pay the interest on sal
water bonds during the period afort
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